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Jobisdone [24]
3 years ago
6

Discuss the propriety of showing: a) treasury stock as an asset - b) ""gain"" or ""loss"" on sale of treasury stock as additions

to or deductions from income c) dividends received on treasury stock as income
Business
1 answer:
r-ruslan [8.4K]3 years ago
6 0

Answer:

a. Treasury stock cannot be shown as an asset because a company cannot buy itself.

b) Gain or loss on sale of treasury stock is not to be treated as income, it should be added or subtracted from share capital because it is a capital transaction.

c). Treasury stock is not an asset. Dividends received from treasury stock cannot be treated as income, it is only assets that generates income.

Explanation:

When corporations for some strategic reasons and the desire to maintain and stabilize the shareholders wealth decide to buy back some of its shares, that is what is known as treasury stock. It is also called reacquired stock

a. The treasury stock is like a corporation acquiring itself, so it cannot be shown as an asset, it is only a reclassification within the same balance sheet.

b. Gains or loss on sale of treasury stock is not an income transaction, it is a transaction that affects the share capital of the corporation and must be charged to the share capital not the income.

c. Since treasury stock is not an asset, dividend received on treasury stock is not to be treated as income, it is only assets that generates income. it should affect retained earnings.

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gross domestic product understates the total production of final goods and services because of the omission of
Aleks04 [339]

90% sure that your answer is <em>(household production) </em>

<em></em>

<em>Hope this helps!</em>

5 0
2 years ago
Max's demand for hot dogs falls as his income rises, then for Max hot dogs are a. a bad good. b. a normal good. c. a neutral goo
kotykmax [81]

         The reduction in Max's demand for hot dogs as his income rises shows that Max's hot dogs are an inferior good.

<h3>What is an inferior good?</h3>

An inferior good is a concept used in economics to describe a product whose demand falls as people's earnings increase. As salaries and the economy improve, people begin to replace these things with more expensive alternatives.

  • The demand for an inferior good usually falls as consumer income grows, as opposed to normal goods, which experience the reverse. 

Therefore, we can conclude that the reduction in Max's demand for hot dogs as his income rises shows that Max's hot dogs are an inferior good.


Learn more about inferior goods here:
brainly.com/question/6039968

5 0
2 years ago
William wants to have a total of $8000 in two years so that he can put a hot tub on his deck. He finds an account that pays 5% i
aev [14]
He needs to put 7600
6 0
3 years ago
If the demand curve is linear and downward sloping, which of the following statements is not correct? Select one: a. Starting fr
PilotLPTM [1.2K]

Answer:

The correct answer is option d.

Explanation:

If a demand curve is linear and downward sloping, different points on the line can show different values of slope. The value of slope will be equal to the ratio of change in price to change in quantity demanded. The value of slope will be the same throughout the line.

The price elasticity is the ratio of change in quantity to change in price. The price elasticity can be different for different points on the demand curve.

The points on the lower parts are more inelastic while the points on the upper portion are more elastic. The midpoint represents unit price elasticity.

Since the upper portion is more price elastic, an increase in price will cause a more than proportionate decrease in the quantity demanded. This will cause the total revenue to decrease.

3 0
3 years ago
T Company expects to incur the following per unit costs for 1,000 units of production: Direct materials of 4 pounds per unit at
Vladimir [108]

Answer:

Total overhead =  = $7,500

so here correct option is E. $7,500

Explanation:

given data

production = 1,000 units

direct labor = ¼ hour @ $24 per hour

variable overhead = 75 % of direct labor

fixed overhead = $3,000

to find out

total amount of overhead

solution

we first find Direct labor that is

Direct labor = ¼ × 24

Direct labor = $6

so

Total overhead will be here

Total overhead = Variable overhead + Fixed overhead     .................1

now put here value we get

Total overhead = ($6 ×  75% ) × 1,000 + $3,000

so

Total overhead =  = $7,500

so here correct option is E. $7,500

8 0
2 years ago
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